The Impact of Standardization and Standards on Innovation

This paper reviews the role of standardization and standards for the various phases of the innovation process ranging from the supply side, i.e. research, to the demand side, i.e. public procurement. In addition, the interrelation between standards and intellectual property rights, especially patents, is addressed. So far, standards have only rarely been considered in policy programmes to promote innovation. Consequently, the number of empirical studies assessing the impact of standardization and standards on innovation is quite limited. However, in contrast to traditional perception of a contradictory relationship, they promote innovation, if several framework conditions, like the openness of the standardization process, are considered. Consequently, the effectiveness of future innovation policy schemes can benefit by a careful consideration of the options standardization and standards offer. JEL Classification: O38